BRK sells water treatment companies for R $780 mi

BRK Ambiental, a sanitation company controlled by the Canadian manager Brookfield, announced on Friday, 10, the sale of three water treatment companies and industrial waste to the South Korean group GS Inima, for R $780 million. BRK has a 82.76% stake in the business – the other 17.24% belong to the FUNCEF (Caixa pension Fund). The largest private sanitation company in the country, BRK Ambiental was created when Brookfield purchased the sanitation assets of Odebrecht, for US $768 million (and valued at R $2.9 billion in October 2016). In the package acquired by Brookfield were the companies Aquapolo Ambiental (SP), Jeceaba (MG) and Distribuidora de Água de Triomphe (RS), which were not considered strategic assets by the manager. BRK operates in 180 municipalities. With investments in industrial waste in Brazil, South Korean GS Inima initiated conversations with BRK Ambiental to acquire control of these companies. The BTG Pactual Bank and BMA Advogados acted as financial and legal advisors to BRK Ambiental in the transaction. PwC, Jacobs Engineering Group and Machado Meyer Advogados advised GS Inima. Disbursement The expectation is that the FUNCEF, according to sources, also sell its share of 17.24% in the business. If you decide on the way out, the total disbursement of GS Inima should add R $940 million. With the sale of participation in industrial assets, BRK Ambiental intends to consolidate its operations in the sanitation market in Brazil. The group is evaluating assets to expand its operations in the country, according to sources on the subject. The GS group is among the largest conglomerates in South Korea. The purchase of BRK Ambiental's business in Brazil was made by the Group's subsidiary in Spain, which specializes in business related to water treatment management. In Brazil, GS Inima controls eight basic sanitation services operations in municipalities in the states of São Paulo and Alagoas.